# In the matter of Kamal Sponge Steel and Power Limited

> NCLT judgment dated 2025-06-04. Citation: TCN-2025-NCLT-00940. M/s Mahakaleshwar Mines & Metal Pvt. Ltd. filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Jun 2025
- **Citation:** TCN-2025-NCLT-00940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/kamal-sponge-steel-and-power-limited-7c9bbd4a

## Summary

### Background

M/s Mahakaleshwar Mines & Metal Pvt. Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Kamal Sponge Steel & Power Ltd. seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor entered into an agreement for the sale of goods on 01.03.2016, where the Operational Creditor agreed to buy 2600 MT of Sponge Iron from the Corporate Debtor.

## Facts

An agreement for the sale of goods was entered into between M/s Mahakaleshwar Mines & Metal Pvt. Ltd. (Operational Creditor) and M/s Kamal Sponge Steel & Power Ltd. (Corporate Debtor) on 01.03.2016.

The Operational Creditor agreed to purchase 2600 MT of Sponge Iron from the Corporate Debtor.

The Operational Creditor made an advance payment of Rs. 1,70,00,000/- to the Corporate Debtor by 14.06.2016, which constituted 50% of the total sale consideration.

The Corporate Debtor failed to supply the goods as per the agreement.

The Operational Creditor sent various reminders to the Corporate Debtor seeking a refund of the advance payment.

The Corporate Debtor acknowledged the debt in various letters dated 02.06.2016, 20.10.2016, 15.11.2017, 02.11.2019, 27.02.2021, and 25.04.2023.

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 9 …

**Ratio:** Section 18 of the Limitation Act provides that where acknowledgment in writing of the

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**Reasoning:** The Corporate Debtor acknowledged its liability in various letters within the limitation

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**Interpretation:** The acknowledgments of debt

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**Application:** The petition filed by the Operational Creditor is within the period of

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## Parties

- **Judges:** Reeta K…; Kavita Bha…
- **Appellants:** M/s Mahakaleshwar…
- **Respondents:** M/s Kamal Sponge…
- **Other parties:** Pawan Kumar…
- **Advocates:** Tarun Ag…; Swadeep Sin…; +4 more

## Timeline

- **2016-03-01 — Agreement for Sale of…**: The Operational Creditor and Corporate Debtor entered into an agreement for the sale of…
- **2016-06-14 — Advance P…**: The Operational Creditor made an advance payment of Rs. 1,70,00,000/- to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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